Arkansas’s budget process is rather unique. Although we have passed more than 100 appropriations in this fiscal session, that is not really the state budget.

The budget is enacted by the Revenue Stabilization Act (RSA). The RSA provides the mechanism for distributing the state’s revenue and is amended each year to reflect the actual budget. By law, Arkansas cannot pass a budget with a deficit. RSA is what keeps us operating in the black.

Any appropriation not funded by RSA is essentially null and void. Although it is needed for appropriations to become effective, RSA itself is not an appropriation bill.

And to pass anything other than an appropriation bill during the fiscal session, there must be agreement by at least two-thirds of the body in both the House and Senate to begin debate. That’s exactly what occurred this week.

The House voted 81 to 2 in favor of Senate Concurrent Resolution 1. This clears the way for the introduction of a bill to set spending priorities for next fiscal year beginning July 1, 2012.

The Joint Budget Committee will hear the details of that bill on Monday. It’s expected we will see a $4.7 billion dollar balanced budget as the end result.

Although there has been debate in recent days regarding cuts, there seems to be a clear consensus that we must increase funding to education and Medicaid. In recent budgets, our state has spent 87 cents of every general revenue dollar on education, health, and human services. We do not anticipate deviating from these priorities.

No matter what the final details of the budget will entail, we know we will have made it through another fiscal year without raising taxes. The Arkansas General Assembly has not raised personal income tax or sales tax since 2004. We are in an enviable position compared to other states. Last year alone more than 30 states had to raise taxes. Budget difficulties have led 46 states to reduce services for residents.

We recognize when voters passed fiscal sessions, they wanted us to get the job done and go home as quickly as possible.

We are on target to do just that. If Revenue Stabilization passes both chambers this week, we will recess next Friday.